Abstract

This thesis is based on two questions: What are the differences in the outcome of a sport event depending on the choice of method to be used for evaluation? And what method is the most appropriate one in terms of evaluation of the economic effects of sport events? There are two methods used: and the first one is the traditional multiplier analysis and the second method used is introduced by Braunerhielm and Andersson (2007). The economic results of the two different methods used in this thesis have been applied on a real life event, The European Championships in Figure Skating in Malmo City 2003. The two methods is of great importance and they provide us with two suggested results that are of interest, but what method to be used depends on who is making the evaluation and for what purpose. The suggested method by Braunerhielm and Andersson (2007) results in an outcome representing the economic effects of the event concerning all areas in the municipality involved both the private sector and the public sector. This method is of best use for athlete organizations that wants to keep a continuous record of their contribution towards the municipality through events and the positive result will help them promote their importance of existence to the municipality so that they can get public funding for arranging future events and gain more profit by increasing the interest of their association. Whereas,the multiplier analysis is appropriate to use for the municipality, as the results is the tax revenue gained from the event that is to be reinvested in e.g. new schools or roads the result will then help promoting the public funding of sport events to the public. The appropriate method to use is the multiplier analysis as it generates results that is of interest for the public as it calculates the effect for the municipality as a whole and not only the effects for the once directly involved in the sport event.